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Utica Woman Sentenced in Fraud Case

U.S. Attorney’s Office February 13, 2013
  • Northern District of New York (315) 448-0672

United States Attorney Richard S. Hartunian announced today that a Utica woman has been sentenced for her role in an insurance and health care fraud scheme.

Today, CYNTHIA MORGAN, age 54, was sentenced by United States District Court Judge Norman A. Mordue in Syracuse. MORGAN was sentenced to 27 months’ imprisonment and ordered to pay restitution in an amount exceeding $1.4 million. MORGAN will also serve three years of supervision following her release from incarceration. She was remanded to prison immediately following sentencing.

MORGAN pled guilty on August 23, 2012 to conspiracy to commit mail and health care fraud. MORGAN admitted that in or about 2005, she agreed with Joseph Demme, Joseph Dellerba, Michael Matrulli, and her husband, David Morgan, to participate in an insurance and health care fraud scheme. The scheme involved a staged motor vehicle accident on Harbor Lock Road in Utica on March 20, 2006. On that date, MORGAN claimed to have been driving a Ford van which was struck by a Ryder truck driven by Matrulli. In fact, the collision was staged and MORGAN was not injured. The defendant, however, claimed to have been injured as a result of the accident and submitted false insurance claims, including claims for personal injuries, no fault benefits, and disability benefits. MORGAN sought medical treatment for non-existent injuries or injuries that were not related to the collision. The bills for this medical care were submitted to and paid by a health care benefit program, specifically an insurance policy issued by Progressive Insurance Company. MORGAN collected $108,000 from Mutual of Omaha under a disability policy with that company. MORGAN also commenced a civil lawsuit seeking damages for personal injuries sustained in the accident. She received a payment of $30,000 to settle that suit.

The case was investigated by the Federal Bureau of Investigation and the New York State Insurance Frauds Bureau. The case was prosecuted by Assistant United States Attorney Edward R. Broton.

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